Genesco Inc., the parent of Journeys and Hat World, said information on credit cards used at its stores may have been taken in a “criminal” intrusion into its computer network. The company said Friday it doesn't know the extent of the breach but said credit- or debit-card numbers, expiration dates and card verification codes may have been taken. It is conducting an investigation with the help of an outside expert, but believes the intrusion has been contained.

The intrusion covered a portion of its computer network that processes payment card transactions for its U.S. Journeys, Journeys Kidz, Shi by Journeys and Johnston & Murphy stores, and for some of its Underground Station stores. The Hat World chain is believed to have been unaffected. Genesco didn't say when the breach occurred, only noting it uncovered it “recently.”

The company said it took immediate steps to secure the affected part of its network, believes the intrusion has been contained and is confident that its customers can safely use their credit and debit cards in the company's stores.

“The extent of the intrusion is not known at this time,” Genesco said. “The company is conducting a full investigation with the assistance of an outside expert to seek to determine the extent of any possible compromise of customer information that occurred in the intrusion.  It is possible that the credit or debit card number, expiration date and card verification code contained on the magnetic stripe of some payment cards used at stores in the affected chains may have been acquired without authorization during the intrusion.  The company currently has no reason to believe that personal information, such as names, addresses or Social Security numbers, was acquired by the intruder. Additionally, the company has no reason to believe that payment card transactions in any of its e-commerce or catalog businesses, any of its Lids Sports businesses, or any of its Canadian stores were affected by the intrusion.”

Law-enforcement officials have been contacted and Genesco is cooperating with authorities to find those responsible for the breach. Major payment card brands have also been notified and are cooperating in the investigation.

Genesco Chairman, President and Chief Executive Officer Robert Dennis said in a statement, “Since we learned of the intrusion, we have worked diligently with outside experts to protect our customers' information and we are confident that they are safe shopping with their credit and debit cards at our stores.  We recommend that our customers review their card statements and other account information carefully and immediately notify their card issuer if they suspect fraudulent use. We sincerely regret any inconvenience this attack on our network may cause our customers.”

Genesco also set up a toll-free hotline at (877) 441-2998 for customers who have further questions. Its statement also included a letter from Dennis providing information about the intrusion and additional steps customers can take to protect their information. The additional steps included steps to place a security freeze on an individual's credit report, ordering free credit reports, steps to place a fraud alert on a credit report. It also pointed out the suspicious activity on credit reports are grounds for filing a police report.

The letter follows:

A Message From Genesco CEO Robert J. Dennis

December 10, 2010

Dear Customer:

Genesco recently became aware of a criminal intrusion into the portion of its computer network that processes payment card transactions for its United States Journeys, Journeys Kidz, Shi by Journeys and Johnston & Murphy stores, and for some of its Underground Station stores.  Immediately upon learning of the intrusion, we took steps to secure the affected part of our network. We believe that the intrusion has been contained and are confident that our customers can safely use their credit and debit cards in all of our stores.

The Company has notified law enforcement authorities and is cooperating in law enforcement's efforts to identify those responsible for the intrusion.  The Company has also notified the major card brands of the intrusion.

The extent of the intrusion is not known at this time.  The Company is continuing to investigate the intrusion, with the assistance of an outside expert, in an effort to determine the extent of any possible compromise of customer information.  It is possible that the credit or debit card number, expiration date and card verification code contained on the magnetic stripe of some payment cards used at the chains mentioned above may have been acquired without authorization during the intrusion.  We currently have no reason to believe that personal information, such as names, addresses or Social Security numbers, was acquired by the intruder.

We recommend that customers review their card statements and other account information carefully and immediately notify their card issuer if they suspect fraudulent use.  Because we have no reason to believe customers' personal information was compromised, we do not believe that identify theft is likely as a consequence of the intrusion.  Nonetheless, we are providing the Reference Guide below, which details some steps you can take to protect your personal information.  For more information or with questions, please call our Customer Information Center at (877) 441-2998 or write to me at 1415 Murfreesboro Road, Suite 490, Nashville, TN 37217.

We sincerely regret any inconvenience this attack on our network may cause you. As always, we appreciate your choosing to shop in our stores.

Sincerely,

Robert J. Dennis
Chairman, President and Chief Executive Officer
Genesco Inc.